a bit of panic : old house not sold, new house ready!

W

whelo76

Guest
Hi,

Any info on this would be appreciated. ~Myself and my girlfriend bought a house. We got approved on a mortgage on the basis of her selling her house. Her house has not sold yet and our new house is ready for snag. I was hoping to get a bridging loan, but we need a sale agreed for that i am told. Is there anyway around this apart from stalling the builder? I dont think the majority of them will put up with a wait. Is there a chance he will just tell us to get lost and find another buyer who is ready to role???
Anyone ever in a similar position? We applied for the mortgage 4 months ago, so we thought the house would have sold before now.

thanks
 
whelo76 said:
Hi,

Any info on this would be appreciated. ~Myself and my girlfriend bought a house. We got approved on a mortgage on the basis of her selling her house. Her house has not sold yet and our new house is ready for snag. I was hoping to get a bridging loan, but we need a sale agreed for that i am told. Is there anyway around this apart from stalling the builder? I dont think the majority of them will put up with a wait. Is there a chance he will just tell us to get lost and find another buyer who is ready to role???
Anyone ever in a similar position? We applied for the mortgage 4 months ago, so we thought the house would have sold before now.

thanks
Click to expand...

Has there been offers on the old house...

would dropping the price get a "sale agreed" ?
 
Even if you did get a sale agreed quickly, it could take weeks to gets contracts drafted and signed. Did your solicitor advise you to sign contracts for the new house even though the old house was not sale agreed/signed?

I remember a solicitor telling me never ever buy a house without having contracts signed on your own property first. His example was that if you loose the new house and the builder sells below the agreed price with you, then you are liable for the difference. And isn't there a risk of loosing a deposit if it has been paid already.

To follow on from the previous thread,go to town getting the old house sold, spend money on it if necessary (as in Selling houses on C4), clean away clutter, new paint, flowers, nice smells etc......
 
Thanks for the replies. looks like dropping the price and hopefully getting a sale is the only option. Our solicitor reluctantly let us sign the papers. This was a few months ago and it appeared at the time that selling a house in the area was not going to be an issue. ITs a large house in quiet area, but there are now lots of houses for sale. She (solicitor) mentioned to us also that someone could come in as a Guarantor. Can this still be done, or is it too late on that front? I am sure my parents would help me out but i have asked too much of them already.
Thanks again.
 
also, don't forget that your new house is still not ready if you're only at the snagging stage. (For me that took another 6 weeks to complete!!). So make sure that you're meticulous in snagging - i.e don't complete the purchase until you're absolutely happy that everything's done. Hopefully your sale will have come through in the interim!
 
Can you stall them that way dunners? is there a set time that builders want your house snagged in?
 
whelo,

It should be possible to get bridging based on a guarantee from your parents.

Banks are notoriously reluctant in such a case to accept their PPR as security (if the worst case occurred there would be a real difficulty in getting the house off them). Do your parents have other assets they could offer as collateral?

And don't forget to haggle like mad on the rate. The banks tend to rely on people being so grateful for getting a bridging loan that they don't pay any attention to the rate.
 
Open bridging (where there is no contract signed for the sale) is nigh on impossible to get as it is hugely risky for the lender (and the borrower). Unless you have sufficient income to remortgage the existing house to release the equity to complete the purchase (would it be possible to let the old house?) your only option is to drop the price.

Sarah

www.rea.ie
 
Also, re the snagging - the developers usually do have a timeframe for completion, after which time they can theoretically start to charge you interest. However, before they can do this, they need to have completed all outstanding valid items on the snag list. In my experience, they have never completed 100% of a snag list.....
 
i would say we/she would have no hassle in letting th house. But it is not an option as need to sell house immediatley. dropping the price seems to the only solution. this is a big of a disappointment as house is only 1 year old and the same houses in the area without garage conversions are going for what she is asking for hers.


thanks guys. i am planking it that the builders will say F you if we stall moving in too long.
 
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